Tatas to partially suspend Teesside plant by weekend

Tata Steel's European arm Corus today said it would partially suspend production at its Teesside Cast Product Plant by the end of this week which could result in a loss of 1,600 jobs.

"The Redcar Blast furnace and Lackenby steel-making would be partially mothballed by the end of this week," Corus Managing Director Kirby Adams told reporters here.

"Out of 2,300 jobs, we are able to save 700 jobs only. About 1,600 workers will lose their jobs," he said.

However, most of them are close to their retirement age and would be getting all retirement benefits, he added.

Corus was acquired by Tata Steel in 2007 for above $12 billion. At present, Corus in records is known as Tata Steel Europe.

The fate of the TCP plant, which has become a political as well as a social issue in the UK after the Tatas announced the possibility of mothballing the plant in May last year, was sealed after it failed to find a solution, either in the form of a government bail-out or a suitable buyer.

Tata Steel has blamed the closure on an international consortium which pulled out of a contract to buy most of the plant's output for 10-years.